Aflac’s Amos Gives Son New Duty as Board Plans Succession

May 22 (Bloomberg) -- Aflac Inc., the largest seller of
supplemental health insurance, said President Paul Amos II will
have expanded duties for Japan operations and investments as the
company prepares for the eventual departure of his father,
Chairman and Chief Executive Officer Dan Amos, 61.

Paul Amos, 37, will work with Aflac Japan President Tohru
Tonoike and Chief Investment Officer Eric Kirsch and will
continue to report to Chief Financial Officer Kriss Cloninger,
the Columbus, Georgia-based company said today in a statement.
Executive Vice President Kenneth Janke was named president of
Aflac U.S., a region that Paul Amos has overseen for more than
eight years. The moves are effective July 1.

“These changes will further expand the knowledge base of
our management team, ultimately benefiting the future of our
company,” Dan Amos said in a presentation to investors today.
“This is the time to build out the opportunity for these
leaders to enhance their experience in other areas.”

Japan is Aflac’s largest market, and the company has been
working to add sales there through banks. In the U.S., Aflac has
the chance to benefit from changes in health-care laws, the CEO
said. Employers may provide reduced coverage to staff, who will
then seek supplemental coverage, he told investors today.

“We have the opportunity to emerge from an evolving
health-care market even stronger,” he said. “There is vast
opportunities heading our way, but at the same time, success
does breed competition.”

Share Buybacks

Aflac also said today it plans to repurchase $600 million
in shares this year, after previously targeting $400 million to
$600 million of buybacks. The company said it plans to buy back
$600 million to $900 million of stock in 2014.

Janke said Aflac doesn’t have immediate plans to issue
debt, and is monitoring markets for an opportunity to refinance
notes that mature next year.

Dan Amos said he’s committed to staying at Aflac until he’s
at least 70. Cloninger, 65, also plans to remain with Aflac at
least until age 70, the company said.

The insurer was founded by three Amos brothers, including
the current CEO’s father, in 1955. The company’s rules give
additional rights to longer-term investors, including Dan Amos,
who controls more than 8 percent of available votes, according
to the company’s proxy filing. Vanguard Group Inc., the largest
shareholder, had about 3.1 percent of votes, according to the
document from March.

The insurer gave Executive Vice President Teresa White the
role of chief operating officer for operations in Columbus,
Georgia. Aflac is in the final stages of selecting a COO for the
Aflac Group division that’s based in Columbia, South Carolina,
according to today’s statement.

Aflac fell 0.9 percent to $55.33 at 4:15 p.m. in New York.
The company has advanced 4.2 percent this year, trailing the 16
percent rally of the Standard & Poor’s 500 Index as a weakening
yen weighs on the insurer’s profits.